Expansion Opportunities Emerge
Major Brands, Owner/Operator Increase Pipeline Of Product For 2021 And Beyond
While significant expansion may have been stalled for the majority of hotel companies in 2020 as a result of the pandemic, it seems to be ramping up pretty steadily throughout the industry, both in terms of new-build activity as well as potential acquisitions.
As an example, Hilton recently announced plans to nearly double its presence in Las Vegas. The company is slated to have more than 30 hotels and over 11,000 rooms across 12 brands in the market by the end of 2021.
The McLean, VA-based brands made revealed its pending development plans on the heels of Virgin Hotels Las Vegas, Curio Collection by Hilton’s June opening celebration, and just weeks before the anticipated debut of Conrad Hotels & Resorts, LXR Hotels & Resorts and Hilton Hotels & Resorts at the integrated Resorts World Las Vegas complex.
The company’s other recent additions within the market include the Waldorf Astoria Las Vegas; the Hampton by Hilton Las Vegas Strip South; and the Hampton Inn & Suites by Hilton Las Vegas Convention Center/Home2 Suites by Hilton Las Vegas Convention Center.
Hilton has committed to continue its expansion in Las Vegas with a pipeline of seven hotels and nearly 4,000 rooms across five brands, which will increase its footprint by more than 50% by 2023. This adds to the company’s development pipeline of more than 2,570 hotels around the world and 105 new hotels totaling more than 16,500 rooms opened in the first quarter.
Meanwhile, Parsippany, NJ-based Wyndham Hotels & Resorts noted the company has continued strong momentum in new construction for its newly introduced prototypes and dual-branded hotels. In the 12 months from April 2020 to March 2021, Wyndham has executed nearly 100 new construction deals across the U.S., achieving approximately 90 percent of the previous 12 months’ pre-pandemic levels.
The company’s construction pipeline now includes over 260 hotels that are currently under construction contributing to an overall new construction pipeline of 950 hotels, which will add approximately 140,000 rooms to its domestic and international portfolio.
In the second quarter of 2021, La Quinta by Wyndham opened or scheduled to open six new construction upper-midscale Del Sol prototype hotels. The brand recently announced the opening of its 120th La Quinta Del Sol prototype hotel. Additional upcoming Del Sol prototype openings include La Quinta by Wyndham Round Rock East in Texas and La Quinta by Wyndham Maricopa—Copper Sky in Arizona.
With three recent U.S. openings, including the Microtel Inn and Suites by Wyndham Milford in Delaware and the brand’s Moda prototype debut in Canada with the Microtel Inn & Suites by Wyndham Lac-Megantic in Quebec, the new Microtel by Wyndham Moda prototype remains on a growth trajectory with approximately 110 hotels in its development pipeline.
Wyndham’s new La Quinta and Hawthorn Suites extended-stay/dual-brand concept has also seen growth momentum, according to the company, with nearly 35 dual-brand hotels in the development pipeline in markets such as Yuma, Arizona, Wichita, Kansas, and Charlotte, North Carolina.
Lastly, a Pyramid Hotel Group, a Boston-based owner/operator, is on track to double its portfolio over the next three to five years. In fact, the company has completed its 25th hotel portfolio addition since June 2020. Pyramid is in the midst of an on-going surge of new business including multiple management agreements, acquisitions, and receivership assignments, with an additional 20 hotels in its immediate pipeline, according to the company.
The new hotels include multiple select- and full-service hotels from Florida to California, as well as international properties in England and Norway. With a combined room count of 4,851 totaling more than $1 billion in asset value, the properties range in size from a 76-room, independent resort and spa to a 444-room, big box, branded hotel. Brand families include Marriott, Hilton and Hyatt, as well as multiple independents.
